You borrow $200,000. The loan requires 20 quarterly repayments at an interest rate of 8% p.a. compounded quarterly. What amount of interest is repaid in the first three months? (a) $191,768.66 (b) $4,000.00 (c) $8,231.34 (d) $12,231.34
Added by John S.
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Since the annual interest rate is 8% and it is compounded quarterly, the quarterly interest rate is 8%/4 = 2%. Show more…
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